From the preface: This text can be used as a course in 'applied economics' for students undertaking their first economics course. It aims throughout to link development to the principles of economics, and to reinforce the understanding of these principles by applying them. Thus a student or teacher might be selective of topics on the grounds that they give an important insight into development problems. At the same time they could use the topic as a means of reinforcing the principles and tools of economics e.g. market operation, market failure, elasticity, trade theory, balance of payments accounting, diminishing returns, national income measurement or welfare and economic growth.